Cryptomining Shut Amid Summer Power Shortages

EghtesadOnline: In a bid to alleviate the power shortages that have led to rolling blackouts the Iran Power Generation, Distribution and Transmission Company (Tavanir) has told cryptomining units to suspend their activities until further notice.

News ID: ۷۸۶۴۷۰

23 May 2021

Mostafa Rajabi Mashhadi, Tavanir's spokesman, said, "Authorized cryptominers’ total power consumption is 300 megawatts. As of today [Saturday] they have stopped mining, but illegal cryptomining farms are disrupting the national grid," IRNA quoted him as saying.

"Unlicensed miners use almost 2,000 MW. High consumption is not the only problem, they [illegal miners] inflict damage on power distribution systems, which is one cause for the outages." Tavanir has shut 1,100 unlicensed crypto mining farms in recent months.

Rajabi warned those who mine cryptocurrencies at home, asking them to switch off their mining equipment. "Failing to comply their equipment will be confiscated and their electricity will be cut." The steep rise in the price of cryptocurrencies in recent weeks has made mining more tempting for Iranians.

Mining virtual currency is legal in Iran and miners are allowed to operate under rules approved by the government in July 2019.

In April the Energy Ministry published revised regulations for guiding cryptomining as per which 16,574 rials is charged for one kilowatt-hour of electricity.

The tariff will be cut by half when household consumption is low and the grid is not under pressure as usually is the case in the summer months.

Rates double during restrictions like when power plants do not receive enough gas as feedstock or the national grid faces problems supplying households.

The base rate is four times the previous 4,800 rials for one kilowatt-hour. Electricity prices for cyrptomining are set as per power export tariffs and based on currency rates at Nima -- a currency platform where forex is traded among importers and exporters. Iran's installed power capacity is 84,000 megawatts.